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September 18, 2008

Backdating Expires: Maxim Suit to Settle

Thankfully, the long drawn-out backdating festival is slowly coming to an end.

Yesterday, Maxim Integrated Products told a San Jose federal court that it had agreed to settle (.pdf) several derivative lawsuits against its former top brass.

The company’s directors and officers insurers will pay the company $21 million. Former CEO John Gifford, who settled with the SEC, will cough up $6 million on his own and cancel his stock options. Former directors are also kicking in some money and canceling options. All in all the settlement comes to about $28 million, double what Apple recently settled its backdating derivative cases. Plaintiffs lawyers, of which there are many, will be getting $15 million.